What Are Making Charges?
When you buy gold jewellery in Dubai, the price has two parts:
- Gold value — the weight of gold multiplied by the current market rate for that karat
- Making charges — the fee for turning that gold into a finished piece of jewellery
The gold value is fixed. It is based on the international gold price, and no dealer can change it. If 22K gold is trading at a certain live rate today, every shop in the Souq is selling the raw gold at roughly the same market-linked price.
Making charges are where shops differ. They cover the labour, skill, design, and finishing that go into your piece. A plain machine-made chain costs less to make than a hand-finished bridal necklace with stone settings — and the making charges reflect that.
How Making Charges Are Calculated
There are two common methods:
Percentage of gold value
The making charge is calculated as a percentage of the total gold value. For example:
- Gold weight: 10 grams of 22K
- Gold rate: the current 22K live rate per gram
- Gold value: 10 × current 22K rate
- Making charge at 10%: 10% of the gold value
- Total before VAT: gold value + making charge
This is the most common method for plain jewellery and machine-made pieces.
Fixed rate per gram
Some jewellers charge a flat AED amount per gram of gold used. This method is more common for simple items where the craftsmanship is standardised.
Typical Making Charge Ranges by Jewellery Type
These are approximate ranges you will encounter at Dubai Gold Souq. Every piece is different, and custom work will be quoted individually.
| Jewellery Type | Typical Making Charges | Why |
|---|---|---|
| Machine-made chains | 5-8% | Minimal hand labour, mass-produced |
| Simple rings and bangles | 8-12% | Some hand finishing, standard designs |
| Earrings (studs, drops) | 8-15% | Small pieces with detail work |
| Pendants with detail | 10-15% | Design complexity varies widely |
| Custom rings | 12-20% | Design, CAD work, or hand carving involved |
| Stone-set pieces | 15-25% | Stone setting is skilled manual work |
| Bridal sets (necklace, earrings, bangles) | 15-25%+ | Multiple pieces, intricate work, often custom |
| Antique-finish or heritage designs | 20-40% | Extensive hand finishing, texturing, oxidation |
The general rule: the more hand work involved, the higher the making charge.
How to Read Your Gold Souq Invoice
A proper invoice from a licensed Dubai gold dealer should show:
| Line Item | What It Means |
|---|---|
| Gold weight | The actual weight of gold in your piece (in grams) |
| Karat / purity | 22K, 21K, 18K, etc. |
| Gold rate per gram | The market price on the day of purchase |
| Gold value | Weight × rate per gram |
| Making charges | The craftsmanship fee (shown as amount or percentage) |
| Stone charges | If applicable — cost of diamonds, gems, etc. |
| Subtotal | Gold value + making charges + stones |
| VAT (5%) | UAE standard rate on jewellery |
| Total | What you pay |
If any of these lines are missing, ask the dealer to provide a detailed breakdown. A transparent dealer will never refuse.
What Is Negotiable and What Is Not
Not negotiable:
- The gold rate per gram — this is set by the market and changes throughout the day
- VAT — 5% is fixed by UAE law
Negotiable:
- Making charges — always negotiable, especially on larger purchases
- Stone pricing — some flexibility on diamond and gem markups
How to negotiate making charges
- Compare across 2-3 shops. Prices for the same style of chain or bangle can vary by 3-5% between shops in the Souq. Walk around before committing.
- Ask "what is the making charge?" directly. A good dealer will tell you the exact percentage or per-gram rate. If they only quote a total price and won't break it down, that is a red flag.
- Buy more to pay less. Making charges often come down when you buy multiple pieces or heavier items. A 50-gram purchase has more negotiating room than a 5-gram one.
- Be respectful. Gold Souq dealers negotiate every day. A polite conversation works better than aggressive haggling. Most will give a fair counter-offer on the first ask.
Making Charges on Gold Bars and Coins
Gold bars and coins typically have no making charges. Instead, they carry a premium over the spot price — usually 1-3% depending on the brand and size.
This is why gold bars are the cheapest way to buy gold by weight. You are paying for the metal with a small manufacturing premium, not for design or craftsmanship.
Qualifying investment-grade gold bars are zero-rated for UAE VAT when they meet the official precious-metals rules. For international resale, ask whether the refinery is LBMA-accredited; for UAE-market bars, also ask about UAE Good Delivery status and dealer buyback terms.
Why Making Charges Differ Between Shops
Three factors explain most of the variation:
-
Rent and location. Shops on the main Gold Souq thoroughfare pay higher rent than side-street shops. Some of that cost shows up in making charges.
-
In-house vs outsourced production. A shop that manufactures in-house (like Saqlain Bullion with our CAM printing and casting workshop) can often offer tighter making charges because there is no middleman. Shops that buy finished pieces from manufacturers include their supplier's margin in the making charge.
-
Design complexity. A mass-produced machine chain from the same factory costs every shop roughly the same to source. But custom hand-finished pieces vary significantly in labour cost depending on the craftsman's skill and time.
The Takeaway
Making charges are not a trick — they are the real cost of craftsmanship. The key is to understand what you are paying for and to compare like with like. A 5% making charge on a machine chain is fair. A 5% making charge on a detailed bridal set would mean someone is cutting corners.
Ask for the breakdown, compare 2-3 shops, and negotiate politely. That is how Gold Souq works, and a good dealer will respect a prepared buyer.
One more thing worth knowing up front: when you eventually sell a piece back, you are paid for its gold content — the making charges you paid originally are not recoverable. That is true at every honest dealer. See how buyback pricing actually works in our guide to selling gold in Dubai.
Check Today's Gold Rate
Making charges are calculated on top of the current gold rate. Check what gold is trading at right now:
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